Phoenix Apartments Attract Investors and Residents New to the Area

A recent report released by Marcus & Millichap has called the Phoenix apartment market “one of the healthiest and strongest in the West.” With its robust economy and a projected growth of 68,000 jobs by the beginning of 2006, the city’s population is steadily expanding, providing “a sound basis” for Phoenix apartment investment.

There are currently 4,500 Phoenix apartments under construction. Even factoring in this increase in Phoenix apartments, “population growth will contribute to a 1 percent decline in vacancy.” Plus, rents are expected to increase by 2.5 percent to an average of $708 a month.

Phoenix apartments are a big draw for out-of-state investors “because the prices are lower than in other major cities,” rounding out at a median price of $52,667. Over the last year, two-thirds of all Phoenix apartment sales involved out-of-state buyers, with California investors making up 57 percent of them.